The following transactions occurred during December 31 2018

The following transactions occurred during December 31, 2018, for the Microchip Company.

3. On August 1, 2018, collected $13,500 in advance rent from another company that is renting a portion of Microchip\'s factory. The $13,500 represents one year\'s rent and the entire amount was credited to rent revenue.

Note: Please break down the problem.

Solution

Rent revenue 7875 =13500/12*7        Unearned Rent revenue 7875